For 42 million student loan borrowers, monthly payments will resume in January Student loan borrowers crushed by five- and six-figure balances could have their payments forgiven under a bill introduced by federal lawmakers this week that would expand the nation's bankruptcy laws.
If passed, the Consumer Bankruptcy Reform Act of 2020 would create a new Chapter 10 provision in the U.S. bankruptcy code under which student loans would be treated like credit cards, medical expenses and other consumer debt. Borrowers would be able to file for Chapter 10 and eventually have their student loan balance removed with the approval of a bankruptcy judge.
The proposal is part of a broader bankruptcy measure introduced Wednesday by Senator Elizabeth Warren of Massachusetts and Representative Jerrold Nadler of New York, both Democrats.
